Academic challenges stimulus package in High Court

Legal academic Bryan Pape is set to challenge the Rudd Government’s stimulus package in the High Court today, citing the package as “exceeding the government’s taxation powers” making the bonus a “gift.”

If Pape is successful in overturning the new law, it could mean that a number of payments made in past years could be made invalid.

The Commonwealth is vigorously defending the case, claiming the law is indeed valid and an important measure to address the global financial crisis.

The hearing is expected to take two days.

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